Burn Shiba Inu Token Jumps 950% in 24 Hours, What Does This Mean for Investors?

Bittime - Shiba Inu (SHIB) is back in the spotlight after recording a sharp spike in burn rate over the last 24 hours. 

Based on data from Shibburn's account on the X platform (formerly Twitter), 30,067,245 SHIB tokens were removed from circulation during that period. This figure represents an increase in daily burn rate of up to 951.63%.

However, even though the number of burn tokens has increased, the price of Shiba Inu has actually decreased in the last 24 hours. To date, the SHIB price is at $0.00002105 (around Rp. 0.34), down 9% compared to the previous day. 

This shows that although the token burning process can reduce total supply, other factors such as profit-taking and market conditions also influence price movements.

Shiba Inu Burn Rate Increases in a Month

Source: X (@shibburn)

In addition to the increase in daily burn rate, Shiba Inu also recorded a significant number of weekly burns. In the last seven days, a total of 90,978,818 SHIB tokens have been removed from circulation, resulting in a weekly burn rate spike of 40%. 

This high burn rate is expected to strengthen the token's value in the long term by reducing the total available supply.

Read also: How to Claim Free TREAT Airdrop from Shiba Inu

SHIB Price Fluctuations and Memecoin Market

The decline in SHIB prices was also accompanied by a decline in the performance of other memecoins, such as Dogecoin (DOGE), PEPE, and Floki. In the last 24 hours, DOGE fell by 9%, PEPE lost almost 15% of its value, and Floki plunged more than 16%. 

In contrast, several other memecoins remained in the green zone, showing varying resilience in the meme-themed crypto market.

In trading last Friday, Shiba Inu showed positive performance with an increase from $0.000022 (around Rp. 0.36) to $0.0000246 (around Rp. 0.40). 

However, profit taking by investors pushed the price back down to $0.00002033 (around Rp. 0.33) on Sunday's session.

Shiba Inu Technical Analysis

Technically, Shiba Inu is currently under pressure. If the downward trend continues, the main support is expected to be at the level of $0.0000196 (around IDR 0.32), which previously managed to arrest the decline on January 13, 2025. 

If the price rebounds, the first resistance SHIB will face is at $0.000025 (around IDR 0.41), before heading towards $0.00003 (around IDR 0.49).

The daily Relative Strength Index (RSI) indicator has moved below its midpoint, indicating temporary dominance of the bearish side. 

In recent weeks, Shiba Inu has moved within the range of the 50 and 200 daily moving averages. Significant movement outside this range will determine the next price direction.

Read also: Shiba Inu Announces TREAT Airdrop Worth Millions of Tokens

FAQ

1. What is token burning?

Token burn is the process of removing a number of tokens from circulation by sending them to an inaccessible wallet address, thereby reducing the total token supply.

2. Why is Shiba Inu's burn rate increasing?

Shiba Inu's burn rate increased due to community efforts to strengthen the token's value through reduced supply.

3. Does Shiba Inu have long-term prospects?

Shiba Inu has potential, especially with various community initiatives such as token burns. However, investors need to consider the risk of crypto market volatility.

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Reference 

U.Today, Shiba Inu Burn Rate Skyrockets 981% as 30,067,245 SHIB Vanishes, accessed January 20, 2025.

X, X Account Shibburn, accessed January 20, 2025.

Author: Y